Abel's Calculators

The gas vs electric debate usually starts and ends with the price tag. An EV costs more up front, so it must cost more overall—right? Not necessarily. But not always the other way either. The real answer depends on a few things that are specific to you: how much you drive, where you live, and how long you plan to keep the car.

Here’s how to think about it.

Two Different Cost Structures

Gas cars and EVs don’t just differ in fuel type—they have fundamentally different cost profiles. Understanding this is the key to the whole comparison.

Gas cars have lower fixed costs but higher variable costs. You can buy a solid gas sedan for $28–32k. Depreciation is relatively predictable. But you’re paying $3–5 per gallon, and maintenance costs add up over time—oil changes, transmission service, brake wear, and so on. The more you drive, the more it costs.

EVs have higher fixed costs but lower variable costs. A comparable EV might run $40–48k. And EVs currently depreciate faster than gas cars in the first few years—roughly 60% over 5 years versus 50% for gas. But electricity is dramatically cheaper than gas per mile, and maintenance is minimal: no oil changes, no transmission, and regenerative braking means brake pads last much longer. The more you drive, the more that per-mile savings compounds.

Miles Driven Is the Biggest Lever

This is the single most important variable. The per-mile cost difference between gas and electric is roughly:

• Gas: At 30 MPG and $3.50/gal, you’re paying about $0.117/mile in fuel
• Electric: At 3.5 mi/kWh and $0.13/kWh, you’re paying about $0.037/mile in fuel

That’s roughly 8 cents per mile cheaper on electricity. Doesn’t sound like much, but it adds up fast:

• 8,000 miles/year: $640/year fuel savings
• 12,000 miles/year: $960/year fuel savings
• 20,000 miles/year: $1,600/year fuel savings

Over 10 years at 15,000 miles/year, that fuel difference alone is roughly $12,000. Add in lower maintenance costs (roughly 3¢/mile vs 6¢/mile for gas), and the EV saves another $4,500 over the same period. That $16,500 in running cost savings can close a lot of the gap on a higher purchase price.

Where You Live Matters

The fuel cost math above assumes national averages, but energy prices vary enormously by state. The gap between gas and electricity can make or break the EV case.

States where EVs have the biggest fuel advantage: Washington, Oregon, Utah, Idaho, and other states with cheap hydroelectric power (electricity under $0.12/kWh) combined with moderate to high gas prices. In Washington, you might pay $0.11/kWh for electricity and $3.85/gal for gas—the per-mile cost difference is over 10 cents.

States where the advantage shrinks: Hawaii, Massachusetts, Connecticut, and other states with expensive electricity (over $0.25/kWh). In Hawaii, electricity costs $0.39/kWh, which brings the EV fuel cost to $0.11/mile—nearly the same as gas. The fuel savings almost disappear.

Our vehicle cost calculator lets you select your state to auto-fill local gas and electricity prices, so you can see exactly how the math works where you live.

The Feature Value Angle

Here’s something that gets overlooked in the gas vs electric debate: you might be able to get a more feature-rich EV and end up at a similar total cost to a base-model gas car, especially if you keep it long enough.

A $45k EV with a tech package, premium audio, and driver-assist features might look expensive next to a $32k base-model gas sedan. But after 8–10 years of lower fuel and maintenance costs, the total cost of ownership can converge. You end up driving a nicer car for roughly the same money—you just pay more of it up front.

This doesn’t always work out, and it depends heavily on the specific models. But it’s worth comparing at the total-cost level rather than just sticker price.

The Unknown Factor

All of the math above assumes things go as planned. But EVs are still relatively new, and there are real unknowns that gas cars don’t have:

• Battery degradation. Most EV batteries are warrantied for 8 years/100,000 miles, and real-world data suggests they hold up well within that window. But beyond it? Replacement costs can be $8,000–$15,000+. This is a risk that’s hard to model.
• Long-term dependability. We have 50+ years of data on how gas cars age. For EVs, the track record is much shorter. Some components (motors, brakes) should last longer. Others (electronics, software systems) are less proven.
• Repair costs and access. If something does go wrong on an EV, parts can be harder to source and fewer shops are equipped to work on them. This is improving, but it’s still a factor—especially outside major metro areas.
• Resale value volatility. EV depreciation has been steeper and less predictable than gas cars, partly because the technology is changing fast. A 3-year-old EV competes with newer models that may have significantly better range and features.

None of this means EVs are a bad bet. But it does mean there’s more uncertainty in the long tail of ownership.

When Leasing Makes Sense

If you’re interested in an EV but wary of the unknowns, leasing can be a smart hedge.

Leasing lets you lock in the benefits of an EV—lower fuel costs, lower maintenance, the driving experience—while capping your exposure to depreciation and long-term reliability risk. You hand the car back before the battery warranty becomes a concern, and you’re not stuck holding an asset whose resale value is hard to predict.

This is especially worth considering if:

• You don’t drive a lot. If you’re under 10,000 miles/year, the fuel savings are smaller, and the EV’s high fixed costs (depreciation, purchase price) dominate. Leasing limits your commitment to the higher upfront cost.
• You don’t plan to keep a car for 7+ years. The EV cost advantage really kicks in at higher mileage and longer ownership. If you like to switch cars every 3–4 years, a lease can be cheaper than buying and selling.
• EV technology is changing fast. In 3 years, there will likely be EVs with better range, faster charging, and lower prices. Leasing lets you upgrade without eating a big depreciation hit.

The trade-off is that leasing is generally more expensive than buying and holding for 10+ years, since you never build equity. But you’re paying for flexibility and risk reduction, and sometimes that’s worth it.

The Bottom Line

There’s no universal answer to gas vs electric. But the framework is straightforward:

1. High mileage + cheap electricity + long ownership = EV wins. The per-mile savings compound over time and eventually overtake the higher purchase price and depreciation.
2. Low mileage + expensive electricity + short ownership = gas wins. The EV never drives enough miles to recoup its higher fixed costs.
3. Uncertain about keeping it long-term? Consider leasing an EV. You get the running cost benefits without the long-term risk.
4. Don’t just compare sticker prices. A $45k EV and a $32k gas car can end up costing the same over 10 years once you factor in fuel, maintenance, and depreciation. Compare total cost, not purchase price.

The only way to know for sure is to run the numbers with your actual situation—your miles, your energy prices, the specific cars you’re considering.